FNS EBT Users Group Meeting – November 2007 Common Business Rules Supplemental Food Programs Division Food and Nutrition Service U. S. Department of Agriculture

Summary of work at the June EBT Users Group Meeting Broke into separate work groups with representation from on-line, off-line and non-EBT State agencies in each group with the intent to gain consensus in the areas of Cash Register Receipts, Mixed Basket and Use of Manufacturer Coupons

Cash Register Receipts How many are needed? While the exact number of receipts was not identified, all groups agree that a balance inquiry and purchase receipt should be mandatory. A receipt for cashiers should be optional as well as a receipt to certify the system is operational since it doesn’t necessarily apply to both on-line and off-line.

Cash Register Receipts What data elements are needed? Elements suggested are: Card Number, Store Name, Date/Time of transaction along with Lane Number. The groups thought the benefit expiration date and time should be included as well. READ SLIDE.

Mixed Basket Benefits There was no question on the benefits of Mixed Basket. As one group put it “when the client and retailer are happy, we’re happy!” I will go over each of the 6 objectives in the 5-Year plan. Objective 1 is to continue to provide grants through an annual competitive grant award process to SA’s that hold promise for statewide viability and system transfer and to test alternative technologies.

Mixed Basket Implementation While there was no question on the benefits of a mixed basket, the implementation of the mixed basket may be more difficult for some retailers. The consensus from the groups was that while mixed basket is the best approach, there should be an option to “turn off” or not use the mixed basket function at the retailer level.

Mixed Basket Order of precedence All groups agreed the order of precedence when using a mixed basket approach is: 1. WIC 2. Food Stamps 3. TANF or Cash

Use of Manufacturer Coupons and In-store Specials Buy One Get One Free All groups agreed that the value of the first item should be deducted from their card and the value of the second item should not be deducted from their card (benefit). (2) Support national standards -- Implement standard for retail electronic transaction processing (ANSI X9.93-2002). -- Pursue other standards, such as between card and card reader. -- Pursue partnerships to maintain a natl database of UPC codes. UPC database info in packet

Use of Manufacturer Coupons and In-store Specials Buy One Get One at Reduced Price If there is one unit left on the card, the unit should be deducted from the card with the option of paying for the reduced price item with cash or some other form of tender. (2) Support national standards -- Implement standard for retail electronic transaction processing (ANSI X9.93-2002). -- Pursue other standards, such as between card and card reader. -- Pursue partnerships to maintain a natl database of UPC codes. UPC database info in packet

Use of Manufacturer Coupons and In-store Specials Buy One Get One at Reduced Price If there is more than one unit on the card, the unit should be deducted from the WIC benefit and the participant should be presented with the option of purchasing the second item (reduced price item) with another form of tender or deducting from their WIC benefit. (2) Support national standards -- Implement standard for retail electronic transaction processing (ANSI X9.93-2002). -- Pursue other standards, such as between card and card reader. -- Pursue partnerships to maintain a natl database of UPC codes. UPC database info in packet

Use of Manufacturer Coupons and In-store Specials Free Ounces Added to Item by Manufacturer Participants should be able to use their EBT card when purchasing WIC approved food items that have bonus ounces added to the package. The additional ounces should not be deducted from the EBT card. (2) Support national standards -- Implement standard for retail electronic transaction processing (ANSI X9.93-2002). -- Pursue other standards, such as between card and card reader. -- Pursue partnerships to maintain a natl database of UPC codes. UPC database info in packet

Use of Manufacturer Coupons and In-store Specials Manufacturer Coupons The price of the WIC approved food item using a cents off coupon should be reduced by the same amount for a WIC participant as it would for any other customer. The additional savings should benefit the WIC program. (2) Support national standards -- Implement standard for retail electronic transaction processing (ANSI X9.93-2002). -- Pursue other standards, such as between card and card reader. -- Pursue partnerships to maintain a natl database of UPC codes. UPC database info in packet

Use of Manufacturer Coupons and In-store Specials Manufacturer Coupons A WIC participant should be allowed to take advantage of a cents off coupon offering free additional non-WIC items with the purchase of a specific WIC food as long as there is no additional cost to the WIC program. The coupon amount should be applied to the transaction total.

Use of Manufacturer Coupons and In-store Specials Store Loyalty Shopping Cards A WIC participant should be provided the opportunity to use Store Loyalty Shopping Cards. The WIC participant should not be required to sign up for and use Store Loyalty Shopping Cards.

Use of Manufacturer Coupons and In-store Specials Discounts A prorated share of the discount applicable to the WIC purchase should be applied to the total transaction.

Use of Manufacturer Coupons and In-store Specials General Issues There may need to be some level of flexibility due to the fact that we have both tax and non-tax State agencies.

Common Business Rules Next Steps Draft Policy Memos have been written for: Cash Register Receipts Mixed Basket Use of Manufacturer Coupons and In-Store Specials We’ll be requesting comments on each of the three draft policies

Common Business Rules Next Steps The next set of issues to be addressed will most likely be: Maximum Pricing Downtime Issuance and Proration Card Issuance and Card Replacement

QUESTIONS?